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Tool shows electric vehicles' cost — now $1.14 a gallon

To promote electric vehicles, the Obama administration unveils eGallon to show consumers that these cars — despite higher upfront prices — are significantly cheaper to drive than gasoline ones.

The Obama administration is promoting the use of electric vehicles such as the Chevrolet Volt, which is battery powered for the first 25 to 50 miles after a charge. Its on-board generator provides additional power to go another 300 miles,(Photo: General Motors)

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DOE says it costs the equivalent of $1.14 a gallon to drive an electric car

It has launched a new calculator, eGallon, to show lower EV operating costs

Could you really drive a car for $1.14 a gallon? Yes, according to a U.S. government tool launched Tuesday that calculates, state by state, the cost of operating electric vehicles.

To promote the use of these cars, the Department of Energy unveiled eGallon for consumers to calculate the local cost of fueling electric vehicles vs. driving on gasoline. It says the current national eGallon price is about $1.14, which means a typical EV could go as far on $1.14 worth of electricity as a similar vehicle could on a gallon of unleaded gasoline.

"Consumers can see gasoline prices posted at the corner gas station, but are left in the dark on the cost of fueling an electric vehicle," Energy Secretary Ernest Moniz said in announcing the calculator. "The eGallon will bring greater transparency to vehicle operating costs, and help drivers figure out how much they might save on fuel by choosing an electric vehicle."

Unlike gasoline prices, which fluctuate with changes in the global oil market, electricity costs are local and historically steady. The eGallon price, found on Energy.gov/eGallon, varies from state to state based on the price of electricity.

DOE says sales of plug-in electric vehicles tripled last year in the United States, when 50,000 sold, and are up significantly again in 2013. It attributes that growth to lower EV costs and better vehicle performance. Last year, the Chevy Volt topped Consumer Reports' annual owner-satisfaction survey for the second straight year and the Tesla Model S won the 2013 Motor Trend Car of the Year.

Still, despite high gasoline prices, EVs remain a tiny share of the U.S. auto market. Last year, they along with hybrids accounted for 3.3% of the overall auto market, according to green-car website Hybridcars.com. The cost of an EV's batteries has made these vehicles pricier than gasoline competitors.

Toyota's Jaycie Chitwood said lithium-ion batteries are just too expensive to make electric cars cost competitive without subsidies. Speaking at the Advanced Energy 2013 conference in April in New York City, she said Toyota is expanding its line of electric vehicles to meet the U.S. government's fuel-efficiency targets — not because they're profitable. She said it gives a $14,000 discount for each new electric RAV4.

Chitwood said a major battery advance is needed. Toyota is working on several alternatives, including cheaper, longer-range batteries that use magnesium instead of lithium. Commercialization, though, is years away.

DOE, which sees EVs as a way to reduce greenhouse gas emissions and U.S. dependence on foreign oil, is funding battery research in an effort to boost their competitiveness. President Obama, in his 2011 State of the Union Address, said he aimed to have 1 million EVs on the road in the USA by 2015.